CPIN – Expects higher demand on free nutritious meal program

CPIN – Expects higher demand on free nutritious meal program Charoen Pokphand Indonesia (CPIN) expects that the government's free nutritious meal program could boost demand for chicken, which is one of its main menu. This initiative is expected to increase domestic consumption levels, reduce supply surpluses, and stabilize price volatility. However, government policies on imported corn and other feed raw materials remained a challenge. Moreover, the local corn' availability and price are dependant on the country' harvest season and weather conditions. Note that, the feed' cost is one of the largest expense components in poultry production. In 9M12, broiler chicken continues to dominate CPIN's revenue contribution at 50%, followed by feed at 25%, processed chicken at 18%, day-old chicks (DOC) at 4%, and other segments at 2%. (Source : Kontan)